Feldstein pointed out that throughout the tax system inflation was turning tolerable paper tax rates into very high effective rates. Corporations, fo… - Paul Krugman

If the question is when markets will recover, a first-pass answer is never.

In this book I try to show how models of self-organization can be applied to many economic phenomena - how the principle of "order from instability," which explains the growth of hurricanes and embryos, can also explain the formation of cities and business cycles; how the principle of "order from random growth" can explain the strangely simple rules that describe the sizes of earth quakes, meteorites, and metropolitan areas. I believe that the ideas of self-organization theory can add substantially to our understanding of the economy; whatever their ultimate usefulness, these ideas are very exciting, and playing around with them is tremendous fun.

In the world of politics, however, the actual content of an academic movement may be less important than the way it affects the tone of the discussion. During the 1970s there was a growing public sense of disillusionment with government, which first fed grass-roots tax revolts in California and , then helped elect Ronald Reagan. And there was also a determined effort by a few extremely conservative journalists and politicians to promote radical tax-cutting plans. No matter how careful the research of conservative public finance theorists like Martin Feldstein might be, in that political climate it was inevitable that it would be widely seen as basically confirming popular prejudices. There was a huge intellectual gulf between Feldstein or Boskin and the sweeping claims of Arthur Laffer; but in the public mind, they were in effect allies.